Investments in nursing homes are protected by law, as the social welfare provider is responsible for nursing home lease payments as part of remuneration agreement if necessary.
Nursing home contracts: investor-operator-resident
Investing in nursing homes is secured by social law refinancing regulations. Care costs are primarily covered by statutory care insurance up to the amount of the legal entitlement and in addition as own share taken over by the resident.
The investment costs (IK rates), from which the lease and maintenance to be carried out by an operator are refinanced, are usually paid by the resident. If he is no longer able to do so, the social welfare agency (municipality) assumes these costs directly for the resident in the form of “subject support”. For this purpose, a remuneration agreement is concluded between the operator and the social welfare provider.
In this way, the operator’s income, which he needs to refinance the lease, is, for the most part, governmentally guaranteed, and the investment in care properties is thus secured.